Telcos in the hot seat after ComCom lays charges

Telecommunications providers CallPlus Services Limited (trading as Slingshot), Flip Services Limited and Orcon Limited are in the hot seat after the Commerce Commission laid 13 charges against them, alleging the companies made false representations in invoices they sent to their customers.

According to a release from the Commission, the charges were filed in the Auckland District Court under the Fair Trading Act and relate to conduct during the period 2 January 2012 to 1 March 2018.

CallPlus Services Limited, Flip Services Limited and Orcon Limited are each subsidiaries of parent company Vocus (New Zealand) Holdings Limited.

Vocus is a major provider of mobile and broadband services to New Zealand consumers and businesses.

The Commission alleges that the companies issued invoices which included charges to customers for the period after the agreed termination date for their contracts.

In doing so, the Commission says the companies misrepresented their rights to payments because their customers only owed payment for the services provided prior to the agreed termination date.

The case will be called in the Auckland District Court on 23 July 2019. The Commission is not commenting further on the charges at this time as the matter is before the courts.